Morgan Stanley has given Gulf Development Public Company Limited (SET: GULF) an ‘Overweight’ rating, with a price target of THB 69.00 per share, underscoring the significance of the company’s newly announced partnership with U.S. tech giant Microsoft in the data center sector.
GULF recently signed an agreement with Microsoft to provide co-location and data center services for data processing and storage in Thailand at its GSA02 data center, where GULF holds a 40% ownership stake. Additionally, the two companies are collaborating—via GULF’s 50%-owned subsidiary—to jointly develop digital cloud and artificial intelligence (AI) solutions.
Key initiatives include the creation of AI-powered customer service systems and cybersecurity solutions that leverage AI integration. Both GULF and Microsoft are also set to pursue a joint go-to-market strategy aimed at delivering advanced digital solutions to clients across both the public and private sectors.
GULF currently operates approximately 8GW of power generation assets within Thailand, along with 50MW of data center capacity that is either operational or under development.
According to Morgan Stanley analyst Keith Weiss, the Microsoft partnership reinforces GULF’s status as a leading hyperscaler infrastructure provider in Thailand, while also advancing its ambition to expand its digital and cloud service capabilities.
Morgan Stanley expects GULF to pursue additional partnerships with major hyperscalers as part of a wider strategy to integrate its power business with the digital sector, catering to the escalating demand from AI-powered applications.
